http://www.thefinancialexpress-bd.com/more.php?news_id=95854
Pvt sector’s Jan credit flow up, marginally
FE Report
Upward trend in the disbursement of private sector credit continued in January last, indicating a gradual improvement in the country’s overall business activities, officials and bankers said.
The rise in private sector credit was 19.25 per cent in January this year from 19.15 per cent in December 2009, according to the central bank statistics.
“The credit flow to private sector increased following rise in financing to small and medium enterprises (SME), agriculture and trade sectors,” a senior official of the Bangladesh Bank (BB) told the FE on Monday.
He said trade financing for the import of food grains particularly wheat and powered milk increased during the period under review because of price hike of the items in the global market.
The credit flow to the private sector rose to Tk 398.01 billion in January this year from Tk 357.74 billion in the same period of the previous calendar year, the BB’s data showed.
Both the central bank officials and senior bankers expect that private credit flow will rise sharply after announcing the guidelines on Public Private Partnership (PPP) investment initiative.
“We expect that the upward trend of private sector credit flow will continue in the near future if the power and gas supply situation improves,” a senior official of a commercial bank told the FE.
